Which of the Following Best Describes What Is Meant by the Phrase

question 35

Multiple Choice

Which of the following best describes what is meant by the phrase "uncontrollable spending" in the context of the federal budget?

• A) Much of the budget is already committed by past contracts and agreements.
• B) Congress and the president seldom agree on a budget.
• C) Politicians lack the courage to make budget cuts.
• D) The amount of time spent in hearings and debates on the federal budget increases every year.
• E) Spending is automatic if no budget agreement is reached.

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Definitions:

Planning Fallacy

The tendency for people and organizations to underestimate the time, costs, and risks of future actions and overestimate the benefits.

Bottlenecks

Points of congestion or blockage in a production process or system that lead to inefficiencies and delays.

Major Business Projects

Significant initiatives undertaken by businesses that involve considerable investment and are aimed at achieving specific strategic goals.

Prospect Theory

A theory in behavioral economics that evaluates how people choose between probabilistic alternatives that involve risk, where the probable outcomes are known.